Mortgage offer less because of season ticket

petegriggs

Hello,

I earn 37k per annum.

I have offered 165 000 on a house and have 17k deposit. I applied to Santander through a broker for a mortgage of 148 500.

Santander have come back today offering a 142 instead of the full 148 because of a season ticket loan that is deducted at 449 per month from my salary.

Can I appeal this as I can afford the mortgage and seems a bit harsh for 6,500 which equates to £15.50 over the 35 year term!

Any help appreciated, I have asked my broker to help and he is currently looking at my backup plan with Halifax.

Mortgage_Mark_2

petegriggs wrote: »

Hello,

I earn 37k per annum.

I have offered 165 000 on a house and have 17k deposit. I applied to Santander through a broker for a mortgage of 148 500.

Santander have come back today offering a 142 instead of the full 148 because of a season ticket loan that is deducted at 449 per month from my salary.

Can I appeal this as I can afford the mortgage and seems a bit harsh for 6,500 which equates to £15.50 over the 35 year term!

Any help appreciated, I have asked my broker to help and he is currently looking at my backup plan with Halifax.

No - your income isn't £37,000; it's £31,612 in their eyes due to the ST deduction. Times this by 4.5 which I suspect is the maximum multiple they will apply in this case, and you get...£142,000.

westv

Presumably you told the broker about large outgoings like that.

Mortgage_Mark_2

Was the ST declared as a commitment on the application?

ACG

petegriggs wrote: »

Can I appeal this as I can afford the mortgage and seems a bit harsh for 6,500 which equates to £15.50 over the 35 year term!

If only it was this easy.

Your broker has made messed up. He should have picked up on your outgoings and checked with santander how they would want it declaring.

Move on to your back up plan as Santander are never going to overturn this as its correct by the looks of it.

shortchanged_2

Well seeing it is a very large outlay, I would guess around 20%+ of your take home pay it is fair enough.

kingstreet

If it didn't pass affordability for the amount required with that commitment in place, the broker shouldn't have submitted it.

Sometimes, you get everything set up and ready to submit and when you check the payslips and bank statements, you find an outgoing not disclosed earlier. If it no longer fits affordability with that lender you find an other lender where it does fit, or explain the lower loan amount which applies.

petegriggs

Hello,

Yes he did know .... I am gutted, I have spoke to work today and they have upped my salary and added me to some out of hours scheme which boosts my salary by nearly 4k.

I am going to get this in writing with the broker and see if it can be appealed or if the other lender is prepared to help.

I was just about to change jobs (offered half way through application but interviewed long before mortgage application) and have declined the offer even though is more money as that will likely make this fall through.

Life is never easy is it!

Mortgage_Mark_2

petegriggs wrote: »

Hello,

Yes he did know .... I am gutted, I have spoke to work today and they have upped my salary and added me to some out of hours scheme which boosts my salary by nearly 4k.

I am going to get this in writing with the broker and see if it can be appealed or if the other lender is prepared to help.

I was just about to change jobs (offered half way through application but interviewed long before mortgage application) and have declined the offer even though is more money as that will likely make this fall through.

Life is never easy is it!

£31,612 + £4,000 = £35,615 x 4.5 = £160,254.

Just make sure that your broker has checked that whatever 'out of hours scheme' will be acceptable to the lender - and also see whether they need a payslip or three (or written confirmation of) the new salary before they'll lend.

stator

Out of interest, is the reason ticket cost the same for where you are moving to as where you live at the moment?
If you moved somewhere transport would be cheaper, would they take this into account?

petegriggs

Evening!

I have spoken to work and they have decided that I could have a incremental rise early!

I have provided written evidence of my previous salary and new salary from work signed and dated on headed paper from HR and have provided this to the broker.

Do you think this will help plug the 6k difference?